Techno-economic study of chimneyless electric arc furnace plants for the coproduction of steel and of electricity, hydrogen, or methanol

Electric arc furnace (EAF) is the most common technology for steel production from steel scrap. Although the input energy is mostly constituted by electricity, significant amounts of carbon dioxide are emitted with the exhaust gases, most of which are classifiable as process-related. The main goal of this study is to perform a techno-economic analysis of chimneyless electric arc furnace plants, fed by either scrap or direct reduced iron (DRI), and able to coproduce steel as well as electricity, hydrogen, or methanol. Several plant configurations are investigated, featuring different combinations of oxy-postcombustion, carbon capture, carbon monoxide-rich gas recovery, hydrogen or syngas production by high-temperature electrolysis or coelectrolysis, and methanol synthesis. These configurations are also characterized by decreased false air leakage and by heat recovery for steam production. Results show that all cases allow achieving a substantial reduction of direct carbon dioxide emissions, close to 99% compared to the unabated conditions. From an economic perspective, in a long-term scenario, the internal rate of return is always above 8%, and up to 73% for the DRI-fed case. However, in a short-term scenario, only cases with sole power production are economically viable. Hydrogen and methanol are competitive with market prices only for low electricity costs. In a higher electricity cost scenario, the case of carbon capture and storage is more competitive than the case of carbon capture and utilization. With an electricity cost of 100 €/MWh, a steel premium of 10-40 €/t allows to reach economic feasibility if methanol or hydrogen selling prices are in line with current market conditions. In general, the configurations with DRI-fed furnaces obtain more favorable economic performance than scrap-fed ones. The competitiveness of sole electricity, hydrogen or methanol production configurations depends on the case study and on the future market prices.